Postal code changes for Sechelt & Halfmoon Bay - To ensure a smooth experience, we are committed to automatically updating all impacted member profiles by 2022 with the new postal code - we've got you covered!
Funding your business: from seed capital to growth financing
Entrepreneurs often report that financing is the most challenging aspect of starting a business. The first step is understanding your options, and determining which is optimal for you and your company.
We all know it takes money to make money, and every business needs capital to get started and to continue operating. It’s the fuel that gives your ideas power. There are a variety of financing options and each has its own unique benefits—just as your business has its own unique needs. To narrow down your options it’s important to consider your credit, your business finances, and your reason for accessing capital.
Here are some of the best options for small business owners.
Traditional Term Loans
How it works: You borrow a fixed amount of money and pay back the loan at a fixed rate over a fixed term. Term loans have a low interest rate and are great for borrowing money for a longer period of time (over 2 years).
Best for: Established business owners with strong credit scores.
Business Lines of Credit
How it works: A versatile funding option, you can pull from it at any time, as and when you need it. You have a certain amount that you can draw from and you only pay interest on what you use. When you pay back the funds you withdraw, you’ll have access to that money again (aka revolving credit).
Best for: Established business owners who need flexible working capital.
Business Credit Card
How it works: Just like a personal credit card, but typically with higher spending limits and lower interest rates. Best for: Startup business owners and good money managers, without a high need for capital investment.
How it works: Short term loans are a condensed version of a term loan. Typically you’ll have to repay what you owe within a year or less, unlike a term loan. The loan amount will be smaller, but access is usually faster and accessible to all types of small businesses.
Best for: Less-established business owners with limited credit scores.
Part of a thriving business is also building up a support network dedicated to your success.
Remember that Sunshine Coast Credit Union is here to provide the advice you need and to help your business grow from a start-up to a self-sufficient operation.